How can I prevent high-risk transaction behaviors such as Ponzi schemes, purchasing tokens on behalf of others, and money laundering?

In recent years, as the blockchain industry has continued to grow, various high-risk trading activities have emerged under the guise of digital asset trading. OKX takes a zero-tolerance approach to such activities and will take action against any users suspected of participating in high-risk trading. At the same time, we continue to enhance our risk control systems to maintain a safe and stable P2P trading environment.

We remind all users to stay vigilant and avoid engaging in the following types of high-risk trading activities.

1. Ponzi scheme.

1. What is a Ponzi scheme?

A Ponzi scheme is a type of fraudulent operation that relies on funds from new participants to pay returns to earlier participants, rather than generating legitimate profits. It typically operates in a pyramid-like structure and is highly deceptive, concealed, and socially harmful. In recent years, more Ponzi schemes have used USDT as a funding method. Promoters often lure users into purchasing USDT on trading platforms and then withdrawing it to addresses controlled by the scheme in order to buy so-called virtual products.

2. What are the risks of Ponzi schemes?

Ponzi schemes are inherently high-risk, as they depend on continuous inflows of new funds to sustain payouts. Such platforms often carry serious legal risks and may shut down or disappear without warning, resulting in total losses for participants.

3. How to avoid participating in Ponzi schemes?

The main attraction of Ponzi schemes lies in their promised returns. These schemes often promote unrealistically high profits to mislead users. If you encounter projects that emphasize guaranteed or unusually high returns, remain cautious and avoid participating. This can help protect your assets and prevent involvement in illegal activities.

2. Buying cryptocurrency on behalf of others.

1. What does buying cryptocurrency on behalf of others mean?

Buying cryptocurrency on behalf of others refers to purchasing digital assets for someone else through P2P trading or other peer-to-peer trading channels.

2. What are the risks of buying cryptocurrency on behalf of others?

Buying cryptocurrency on behalf of others essentially means handling or transferring funds for someone else. As P2P trading has become widely accessible and cost-efficient, requests for proxy purchases may involve potential fund or compliance risks. If you knowingly assist others in transferring funds for activities conducted through online networks that may be illegal, you could be exposed to legal or regulatory risks.

3. Payment routing schemes

1. What is a payment routing scheme?

A payment routing scheme refers to the act of using payment tools such as WeChat, Alipay, or bank cards to collect payments on behalf of illegal platforms in exchange for commissions.

2. What are the risks of payment routing schemes?

1. Online payment routing platforms collect a large number of users’ payment QR codes and use methods such as QR-code payments and bank transfers to split large amounts of funds from unknown sources into smaller transactions. These funds are then distributed across users’ WeChat, Alipay, and bank accounts, which involves significant risks and may be associated with criminal activities.

2. Personal information leakage. Participating in such schemes often requires users to provide personal details such as name, ID number, phone number, email address, and bank card information. This exposes users’ personal data to these platforms, which may misuse the information for illegal activities such as fraudulent loans or fake donations, potentially resulting in financial losses.

3. Users are often required to pay a deposit before participating. These platforms may later evolve into multi-level fund distribution schemes and carry a risk of suddenly shutting down or disappearing.

OKX has implemented various risk control strategies to address the aforementioned illegal activities.

1. AI-based risk control models monitor suspicious user behavior 24/7. If a high-risk user initiates a high-risk withdrawal, the withdrawal will be directly rejected.

2. Big data–driven risk controls are applied across every key stage of P2P transactions to maximize the identification of suspicious users.

3. Once high-risk users are identified, their account permissions, as well as those of any related accounts, will be immediately restricted.

4. Multi-dimensional facial recognition monitoring

OKX reminds all users not to participate in any of the illegal activities mentioned above. If you encounter such behavior, please reach out to our OKX Assistant promptly.

Maintaining a safe and stable P2P trading environment has always been one of OKX’s responsibilities. Based on existing measures, OKX will continue to optimize its risk control systems, strengthen user education, and take firm action against illicit activities to safeguard users’ funds.